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Question - The static budget, at the beginning of the month, for Onyx Décor Company, follows:
Static budget:
Sales volume: 1,000 units; Sales price: $70.00 per unit
Variable costs: $32.00 per unit; Fixed costs: $37,900 per month
Operating income: $100
Actual results, at the end of the month, follows:
Actual results:
Sales volume: 970 units; Sales price: $74.00 per unit
Variable costs: $35.00 per unit; Fixed costs: $34,400 per month
Operating income: $3,430
Calculate the flexible budget variance for sales revenue.
A) $4,470 U
B) $4,470 F
C) $3,880 U
D) $3,880 F
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